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Circular No. 961/04/2012-CX
F.No.201/03/2010-CX.6
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
New Delhi, the 26
th
March, 2012
To
All Chief Commissioners of Central Excise
All Chief Commissioners of Customs & Central Excise
All Chief Commissioners of LTU
Sir/Madam,
Sub: Revised Treaty of Trade between India and Nepal.
As you are aware, Duty refund procedure (DRP) prescribed by Notification No. 20/2004-CE(NT) dated 6.9.2004 has been
rescinded vide Notification No. 25/2011-CE(NT) dated 5.12.2011 w.e.f 1
st
March, 2012. Export to Nepal under claim of rebate
is permissible under Notification No. 19/2004-CE(NT) dated 6.9.2004 as amended by Notification No. 24/2011-CE(NT) dated
5.12.2011 issued under rule 18 of Central Excise Rules, 2002 and under bond/LUT vide Notification No. 42/2001-CE(NT)
dated 26.6.2001 [as amended by Notification No. 26/2011-CE(NT) dated 5.12.2011] in terms of Rule 19 of Central Excise
Rules, 2002.
2. Clarifications have been sought as to whether in view of rescinding of Notification No. 20/2004-CE(NT) dated 6.9.2004,
goods cleared under DRP invoices by Indian exporters from their factories etc. prior to 1
st
March, 2012 but yet to be exported
to Nepal within the time limit of six months prescribed in Notification No. 20/2004-CE(NT) are to be treated as exports under
DRP procedure or as normal export in terms of Notification No. 19/2004-CE(NT) dated 6.9.2004 as amended. It is clarified
that such exports shall be treated as exports under the DRP procedure and duty refund will accordingly be credited to the Govt.
of Nepal as per the procedure laid down under the DRP. The rebate element will not be admissible to Indian exporters in
respect of such goods.
3. Further, Board has also been requested to clarify whether exports under claim of rebate under amended Notifications No.
19/2004-CE(NT)dated 6.9.2004 or under bond in terms of amended Notification No. 42/2001-CE(NT) dated 26.6.2001 are to
be permitted even when the export proceeds are paid in Indian Rupees. It is clarified that neither Rule 18 or Rule 19 of Central
Excise Rules, 2002, nor the above mentioned notifications make any distinction on the basis of mode of payment of currency
for exports. It is therefore clarified that exports to Nepal will continue to be permissible irrespective of whether the payments are
made in Indian currency or foreign convertible currency as long as they are in accordance with applicable RBI guidelines.
4. Difficulties, if any, faced in this regard may be brought to the notice of Board immediately.
5. Field formations and Trade may also be suitably informed.
6. Hindi version will follow.
V.P. Singh
Under Secretary(CX-6)
circulars no 961 04 2012 | iKargos